Enterprise Resource Planning (ERP) enables organizations to manage their diverse and complex business functions. An ideal ERP software not only provides users with a centralized system but also assists them to bring the automation of core processes. For example, manufacturing companies can keep track of warehouse movements and maintain the supply chain while bringing automation in human resources and auditing processes.
It is expected that the global ERP software market will cross USD 45 billion by the end of 2022. It is because many companies across core industry sectors like healthcare, construction, and nonprofit groups utilize ERP software these days. In this post, we will see how ERP can transform various business operations. But before moving ahead, it is necessary to understand the most sought-after features of an ideal ERP solution.
Five Big Features to Consider While Selecting a New ERP
Today, we have a number of ERP solutions available in the market. It is, therefore, necessary to gather information about their features and ERP solution vendors to make the right selection. Here are the five features you can consider to choose the most suitable ERP software.
- Opt for Experienced ERP Vendors
A reputed and experienced ERP vendor has hands-on experience of providing advanced solutions based on complex requirements of different industry sectors. For example, you can opt for a leading SAP Partner for integrating an SAP ERP solution into your business system.
- Ask for Technology and Support
Before implementing an ERP solution, you can ask for the technology on which it is based and whether its architecture is supporting your company’s business strategy. You can also inquire about the built-in support and troubleshooting features.
- Check the Functionality and Features
This is one of the most important factors to consider while selecting the right ERP software. Though many ERP vendors claim that their solutions are the right fit for your company’s objectives, you should cross-check these claims.
- Consider After-sales Support
After-sales support is necessary to leverage all the benefits of an ERP solution effectively. This support includes training, maintenance, and 24×7 online technical assistance. Many ERP solution providers have partner networks to offer extensive support as well.
- Understand TCO (Total Cost of Ownership)
You may find that most vendors offer ERP solutions at similar prices. But then, some factors like annual support fees, ongoing support charges, etc can make a difference in the total cost of ownership over a five-year period.
Top Business Benefits of ERP Solutions
Apart from managing many operations simultaneously, ERP solutions can offer various benefits to modern enterprises. Here are some of the benefits that show the importance of an ERP system for your company.
- Cost Reduction
It is fair to mention that ERP implementation requires a big investment. But it can give your enterprise an excellent ROI over the period. On one hand, an ERP solution can streamline the entire operation and on the other hand, it saves a lot of time and effort by automating several processes. You can get the benefits of a centralized system and the unification of departments.
- Enhanced Collaboration
The centralized database enables seamless access to corporate information for all departments. As a result, the business system can offer effective collaboration. Also, it is possible to keep all the team members, irrespective of their departments, on the same page with a centralized database of a robust ERP solution.
- Increased Productivity
There is no escape from tedious and repetitive tasks with traditional methods. For example, monitoring inventory levels, timesheet tracking, order processing, and report generation can be time-consuming and require more effort. Here, an ERP solution lends a helping hand by managing such tasks and increasing overall productivity.
- Effective Analytics
A centralized database can improve analytics significantly and your employees can get real-time reports. As a result, the management can make informed decisions as and when necessary to ensure the growth of your company. An ERP solution also ensures that your teams can get all the reports in a detailed and accurate way every time.
- Better Customer Services
An ERP solution can give the benefit of digitization thereby contributing to increased customer satisfaction. You can provide a rich experience to your customers while improving support services based on the data and as a result, increase the sales figures. Most ERP solutions have a built-in CRM tool that can ensure quick and accurate customer service.
- Proper Compliance
Another noteworthy benefit of an ERP system is that your company can manage risks effectively and simplify the process of compliance. It makes it easy for your enterprise to follow the prevalent regulations to maintain compliance. Also, in-built auditing tools are useful in documenting various aspects like tax provisions, supply and stock status, etc.
Big Reasons Why SAP is the best ERP?
SAP is a short form for Systems, Applications & Products in the domain of data processing. A German company SAP AG has developed this ERP and business intelligence solution. Its robust service-oriented architecture and high scalability make it suitable for all types and sizes of businesses globally. Here are the top five factors that set SAP ERP apart from other ERP software.
- More Scalability
As companies grow, they need more scalable and flexible solutions to manage different processes. SAP ERP, with its three-tier and client-server architecture, can serve this purpose effectively. It is more modular and customizable as compared to many ERPs available in the market. As a result, users can upgrade their existing ERP software with ease to meet changing business needs.
- Shorter Implementation Time
Compared to other ERP solutions, SAP ERP takes less time to implement. What’s more, corporate clients can also take help from third-party service providers or SAP Partners for the implementation of the add-ons. For example, SAP Cloud solutions offer the functionality to use PayPal and Google. In a way, it is possible to remain more efficient for companies.
- User-friendliness
SAP ERP is a more user-friendly solution than other available options. It is free from any redundant features and includes all the necessary features for ensuring the growth of companies. Though SAP ERP has complex features, it has remained user-friendly and simple with a relatively shorter learning curve for users.
- Quicker Payback
As per an official survey conducted by the Panorama Consulting Group, usually, companies can start getting an ROI from an ERP solution after 2.7 years. But, for SAP ERP, this average is quite less at just nine months. This is one of the major reasons why SAP is one of the most preferred and popular ERP solutions in the world.
- Industry-oriented
A customized ERP system can be used to manage the operations of a particular industry. We have different ERP solutions available for the manufacturing, retail, and education sectors. But, SAP ERP is an exception. As a feature-rich and robust ERP solution, it caters to all core industries with its seamless functionality. Corporate clients can also scale up SAP ERP as their business grows.
Where is SAP ERP Useful?
SAP ERP can be used across all industry sectors irrespective of the size and business model of an enterprise. You can use SAP for managing inventory, retail, sales, manufacturing, and procurement processes. For example, SAP ERP for warehouse management systems is useful for monitoring the movement at a warehouse and controlling various operations related to inventory and logistics.
Top applications of SAP ERP software include-
- Cost Monitoring
- Finance and Tax Control
- Quality Control Management
- HR Management
- Report Generation and Auditing
- Business Performance Analysis
Conclusion
Advanced ERP technology can take your company to a new level by improving customer services and enhancing a decision-making process. It streamlines business processes and increases the overall productivity of your enterprise. Whether you run a startup, an SME, or a large enterprise, SAP ERP can always assist you in simplifying complexities and meeting ever-changing business needs. All you need to find a reputed and reliable SAP Partner to get these benefits.
